FIXED INCOME MANAGER
QUESTIONNAIRE
Organization:
1. Provide the following general information:
 Address of headquarters and affiliate locations.
 Main contacts.
2. Summarize any key events or changes to the firm, products offered or material developments that
have occurred over the past 3 years. Describe any changes in ownership over the past 3 years.
3. Identify the Top 3 owners of the firm and their percentages:
Name
% Ownership
4. What percentage is employee ownership? Which employees are eligible? Management only,
professionals only, or all employees?
5. Provide an organizational chart for the Core / Intermediate Fixed Income team(s). Identify the key
professionals responsible for our account, their titles & responsibilities; years of experience with Fixed
Income management; total years of investment experience and their educational backgrounds.
6. Complete the following table regarding the firm’s Core / Intermediate Fixed Income Personnel:
Fixed Income
Current #
As of June As of June Average Yrs
Average
Personnel
Employed
30, 2015
30, 2014 Experience in Tenure with
Industry
Firm
Management/Admin
Portfolio Managers
Research Analysts
Operations/Compliance
Traders
Economists
Client Service/Mktg
Other
Total
7. Identify all additions/departures to the Core / Intermediate Fixed Income team over the past 3 years
and the reason.
1
8. Provide the following information regarding assets under management:
Assets under management (in
Fixed Income
Equity
millions) as of:
Total Firm Assets
June 30, 2015
June 30, 2014
June 30, 2013
9. Complete the following table regarding the firm’s fixed income clients:
Client Type
# of Clients
% of Total AUM
Corporate
Public Fund
Union/Taft-Hartley
Foundation/Endowment
Insurance
Sub-Advisor Assets
High Net Worth
Other
10. Provide a distribution of the asset sizes of fixed income portfolios (excluding money market funds)
that your firm has managed for the past 3 years.
Asset Range
Percentage of Total Assets by Year
June 30,
2015
June 30,
2014
June 30,
2013
100%
100%
100%
Up to $250 million
$250 million to $500 million
$500 million to $1 Billion
$1 billion to $5 billion
Over $5 billion
11. Is there a maximum capacity for the Core / Intermediate fixed income product? If so, explain.
12. Number of accounts gained/lost in Core / Intermediate Fixed Income over prior 3 years and reason.
Accounts
Number Dollars (in millions) Accounts Number
Dollars (in millions)
Gained
Lost
6/30/15
6/30/15
6/30/14
6/30/14
6/30/13
6/30/13
13. Separately managed Core / Intermediate Fixed Income: # of Portfolios_____, AUM $______; % of
Total Assets_____
2
14. Commingled Fixed Income Portfolios: # of Portfolios_____, AUM $______
15. Provide a brief summary of your firm’s experience with managing fixed income portfolios of our
size ($100MM - $500MM) for federal, state or local government entities that require you to adapt
quickly to policy modifications, liquidity needs, realized loss constraints, etc. while maintaining
performance relative to the index.
16. Briefly explain the compensation structure for portfolio managers, analysts and traders.
17. Have any of the firm’s investment professionals ever been involved in a lawsuit related to their
business activities? If so, explain.
18. Have any of the firm’s fixed income investment professionals been warned, sanctioned and/or fined
by a regulatory body, exchange or court? If so, explain.
19. Please provide three fixed income client references, including the client’s name and contact
information.
Investment Strategy and Process:
20. Describe your current investment strategy/philosophy. Identify where you add value and how you
differentiate yourselves versus your peers.
21. Describe your 12 month outlook regarding duration, yield curve positioning, sector allocations and
security selection for Core / Intermediate mandates. Identify the normal, annual return attribution you
expect from each of these factors.
22. What market conditions and/or circumstances cause this product to perform exceptionally
well/poorly?
23. Describe your investment process (i.e. from idea generation to decision making to implementation)
and how you construct a portfolio. Include your buy/sell discipline.
24. How many analysts are dedicated to the Core / Intermediate fixed income product? Provide an
overview of your research capabilities, including the use of fundamental, technical and quantitative
analyses. Provide any additional comments that are unique to your firm.
25. Who has ultimate decision-making authority on our account?
26. What are the risks to your strategy?
27. Describe your risk management process including quantitative models used. Explain the tools or
processes used to monitor/prevent the account from deviating too far from benchmark measures.
3
Characteristics & Performance:
28. Provide the following information regarding your Composite Core Fixed Income product:
Characteristic
(%)
Active Risk – Security Level (maximum permitted)
Active Risk – Security Level ( current highest)
Active Risk – Sector Level (maximum permitted)
Active Risk – Sector Level (current highest)
Portfolio Beta (target)
Portfolio Beta (5 years ending 6/30/15)
Tracking Error (target)
Tracking Error (5 years ending 6/30/15)
Information Ratio (target)
Information Ratio (5 years ending 6/30/15)
Number of Positions (average)
Number of Positions (current)
Targeted annual excess return to Barclays Agg
29. Provide the Core Composite Quarterly Sector Allocations (based on S & P ratings):
Asset Class
Q215 Q115 Q414 Q314 Q214 Q114 Q413 Q313 Q213 Q113 Q412 Q312
Treasuries
Agency Debt
Prime Agency MBS
AAA Prime Priv. MBS
Sub-prime & Alt-A
AAA rated CMBS
Less than AAA CMBS
ABS rated AAA
ABS Less than AAA
AAA Corporates
AA Corporates
A Corporates
BBB Corporates
Less than BBB- Corp.
Munis
CDOs
Other
4
30. Representative Fixed Income Composite Characteristics (most recent quarter):
Annual Average Turnover
Turnover Range (Target)
Weighted Average Coupon
Yield to Maturity
Yield to Worst
Effective Duration
Average Cash Position
31. Current Fixed Income Composite Distribution:
Number of Years
Average Maturity Avg. Effective Duration
(%)
(%)
Less than 1
1–3
3–5
5–7
7 – 10
10 – 20
Greater than 20
Total
100%
100%
32. Current Fixed Income Composite Portfolio Quality:
Credit Quality
% of Portfolio
AAA/Aaa
AA/Aa
A
BBB/Baa
Below BBB-/Baa3
33. Regarding corporate credit, provide the typical number of corporates positions held and issuer
concentration limits as of the most recent quarter.
34. Has the firm been verified GIPS compliant? Provide a copy of the most recent verification letter.
How many years has the firm been verified?
5
35. Fixed Income Composite Historic Performance:
Year Gross Net of
Benchmark Number Total
of Fees Fees
Return
of
Composite
Return Return
Portfolios Assets
Total Firm Info Ratio Tracking
Assets
Error
6/30/15
6/30/14
6/30/13
6/30/12
6/30/11
6/30/10
6/30/09
6/30/08
6/30/07
6/30/06
Trading and Compliance:
36. Identify the platform(s) utilized for trading.
37. Who trades our portfolio, PM or trader? How do you ensure best execution?
38. How are trades allocated between accounts?
39. Describe briefly your broker approval process.
40. How do you choose a broker/dealer when placing buy/sell orders?
41. How do you monitor and/or control trading costs?
42. Do you trade with any broker/dealer affiliates? Do you trade with them?
43. Do you use soft dollars? If so, explain.
44. Identify the platform/software utilized for compliance. Does it interact with the trading platform?
45. Describe your compliance process, identifying the party ultimately responsible for ensuring that the
investment guidelines are not violated.
46. When was your firm’s last compliance assessment/audit conducted? Provide a summary of the
report findings.
47. When was your firm’s last SEC regulatory examination conducted? Provide a summary or the
exam’s findings.
6
48. What relationships do you have which could be perceived as having the potential for a conflict of
interest? Does your firm maintain a Code of Ethics?
49. Briefly comment on management’s future commitment to trading and compliance systems,
personnel, software/hardware, etc.
Miscellaneous:
50. Does your firm carry fiduciary liability coverage covering advisory services provided to all your
clients? If yes, provide the coverage amount. If no, do you carry any other type of insurance coverage
for the services your firm provides? Please explain.
51. Please provide the fee schedule for the core fixed income product. Are fees negotiable? Is there a
minimum account size?
52. Please include any other pertinent information that should be considered in evaluating your firm and
the core fixed income product.
53. Do you use a third party (individual or firm) Placement Agent? If so, please completely and
accurately disclose all such relationships including the services provided and the compensation paid.
7